The Presidential Fiscal Policy and Tax Reforms Committee has dismissed claims that new tax laws will impose a 25 per cent levy on building materials and private funds.
In a statement on Sunday, the committee described a viral video circulating online as misleading and inconsistent with provisions of the Nigeria Tax Act 2025.
It clarified that the law has already taken effect and contains no clause introducing a 25 per cent tax on construction funds, bank balances or routine business transactions.
Rather, the committee said the reforms aim to reduce housing costs, stimulate real estate growth and ease financial pressure on tenants and small businesses.
Key measures include Value Added Tax exemptions on land, buildings and rent, alongside input VAT credits designed to lower developers’ construction expenses.
A reduced two per cent withholding tax on construction contracts was also introduced to improve cash flow and cut financing strain on contractors.
Tenants are eligible for rent relief of up to N500,000 annually, while lease agreements below N10 million are exempt from stamp duty charges.
The Act further grants tax deductions for landlords on expenses such as repairs and insurance, and exempts capital gains tax on disposal of dwelling houses.
President Bola Tinubu signed four tax reform bills into law in June 2025, marking a major overhaul of Nigeria’s tax administration framework.
The committee urged citizens to verify claims against the law’s actual provisions, insisting the reforms are designed to boost affordability and economic growth.
